The economic decision making is actually a technical
act of deciding the matters of any economy. In this study we have considered
two trading partners of Australia and these are India and China. So we are
going to analyze the decision makers of these two countries, India and China
along with their common trading partner Australia. We will critically evaluate
their behavior and decisions and its impact on their economic condition as well
as in the global economic scenario. The economic decision makers of a country
are the business tycoons, the exchange board, the finance minister, economic
advisor and head of the central bank etc.

The largest two way trading partner of Australia is
China by some margin. Australia meets the strong demand of Iron core, liquefied
natural gas and coal as a trading partner. So the biggest trading partner of
Australia is China. The effect of global economic meltdown can be seen in most
of the trading countries of the world in the recent past (Chapman, 2013).
Australia succeeded to escape from this with the help of exporting culture to
China in the past two years. The consumption of natural gas, coal etc. in China
is really huge. So the major mining companies in Australia rely on this huge
demand of China. The exporting compositions from China to Australia are prams
and sporting equipments, telecommunication equipments, clothing, toys,
computers etc. The amount of bilateral trade between China and Australia is
worth A$ 105 billion in the period 2010 – 11 (Cheung, 2015). In this total
Australia exports the major portion of the bilateral trade and China exports
the minor part. The amount of export from Australia to China is worth A$ 64.8
billion in total but the export amount from China to Australia is worth just A$
41.2 billion in the period 2010 – 11. The export – import relation between
Australia and China was not so good in the past (Wu and Lam, 2011). After the
trade liberalization and also the globalization the trade relationship between
Australia and China developed. In 2012, the import of Australia from China was
worth A$ 50 billion (approx.) and the export of Australia to China was worth A$
85 billion (approx.) (Lu, et al, 2015). This statistics shows the increments in
total export – import composition in amount. The export of Australia to China
is much more than the export of Australia to India. If we do a compartmental
analysis of total export and import dividing into export-import of products and
services, the vision will be clearer. The import of products of Australia from
China is worth A$ 35 billion and in case of services this amount is worth A$ 15
billion (Mandal, 2014).

A Comprehensive Economic Cooperation Agreement is
negotiated and signed between Australia and India and it is launched in May.
2011 (Strba, 2012). Already six rounds of negotiations have done under this
agreement and the most recent negotiation was held in December 2014.

The key internal issues faced by the company are –

1.This
comprehensive agreement assists behind the broader restrictions on trade in
goods and broadens the base of merchandise trade by affecting the tariff
barriers.

2.This
agreement reduces the barriers of foreign trade and also encourages and
facilitates the foreign investment. In this way the transparency has increased
and investment protection is enhanced.

3.This
FTA has influenced the potential to expand the trade in services between the
two countries by reducing the barriers faced by the service suppliers of
Australia.

Classical economics discovered that trade can be
treated as the engine of growth of any economy and it is also implemented by
the neo classical and the modern economists. After the modernization and
globalization India has seen a very good growth and development scenario. Now
trade can act as a catalyst in the development process of India. As because
Australia takes a major potion in trade composition of India so expansion of
trade with Australia can improve GDP condition of India. It is also applicable
for China as well and the trading partner Australia.

According to Bandyopadhyay et al (2012) the eighth
largest trading partner of India is Australia and India takes the fifth position
in trading with Australia. Australia is one of the biggest exporting countries
of the world. India takes part as the export destination of Australia. In the
period of 2009 – 10, India takes the fourth place among the export destinations
of Australia (Calo, 2014). Australia has revealed a good trading country in the
recent decade and achieved an exponential growth rate in trade with India. The
trade amount of goods and services between India and Australia was near about
A$ 6.55 Billion (Pittock, et al, 2015) in 2003 -04 but it rises in leaps and
bounds with in the period of 2009 – 10 in a more than triple amount (A$ 21.05
billion). India exports in a much lesser amount to Australia than Australia
exports to India. The export amount from India to Australia is A$ 2.80 billion
(approx.) where as the export amount from Australia to India is A$ 18.9 billion
in 2010 – 11. A clear analysis can be made if we can recognize the amount of
total goods export – import and services export – import between two countries.
In 2010 – 11 periods India exported goods of A$ 2.1 billion to Australia and
imported goods of A$ 15.75 billion from Australia (Rafiqul et al, 2012). The
amount of services export from India to Australia is A$ 0.70 billion and the
amount of services import from India to Australia is A$ 2.5 billion.

We can also analyze the import – export composition
between two countries. The largest export of India to Australia is pearls and
gems, jewelers, medicaments and passenger motor vehicles in 2010 - 11. The
export composition of services from India to Australia is computer and
information services and tourism and the export composition of services from
Australia to India are education, education related travel and tourism (Strba,
2012).

The trading relationship between Australia and India
has seen a remarkable growth in the recent past. It is already discussed in the
previous analysis. There are many complementarities between the two countries
and the economic decision makers take the much effective fuels from this and
Australia is also in a advantageous condition for this. The trade influencing
government policies of both of the countries has influenced the Trade amount as
well as the trade relationship after the financial year (FY) 2003 – 04
(Bandyopadhyay, et al, 2012). The value of the two way trade of goods and
services was worth of A$ 8.2 billion in FY 2003 – 04 and it increased up to
worth A$ 15.3 billion in FY 2013 – 14.

Australia gets a huge market in India because of its
1.2 billion populations and India is also the largest democracy. There are
several positive points that are utilized by Australia for trading purpose. The
positive points are the youthful population of India, the diversified economic
environment of India, the well growth trajectory of India etc. (Rafiqul et al,
2012). All these matters influence the Australian business houses to grab a
very good and significant business opportunity. The different sectors to
business are manufacturing, mining and services, agriculture, energy etc.

The China-Australia Free Trade Agreement (ChAFTA) is
signed between the two governments of China and Australia. It is a bilateral
Free Trade Agreement (FTA) in recent past (17th November, 2014).

After the implementation of this agreement fully
between these two countries the 95% of the total trade between Australia and
China will be free of tariff (Pittock, 2012). This tariff policy includes
several agricultural products basically and it should be noted that beef and
dairy are also included under this agreement. The service sector of Australia
is liberalized to market access after this agreement. The investments of the
private companies of China in Australia will not remain subject to FIRB
approval. There is a Work and Holiday Agreement too for work and holiday makers
of China in Australia. Up to 5000 visas will be granted by Australia to Chinese
nationals (Pittock et al, 2015)

In the above analysis the trade condition between
the countries Australia and China and also Australia and India is analyzed
firstly. Then the economies of global decision makers are tried to be cruised.
Their decisions are so vital to develop the trade condition of the economy and
also the existing trade relations. Under these circumstances it is clear that
the free trade agreement between two countries results very much positively in
the trade situation between two countries.

There are two trading partners of Australia in this analysis.
So a comparative study can provide a better conclusion regarding this matter.
it is clear that the trading position of Australia is better with China than
India. But the economic thinking of current government of India can improve the
trade relationship between Australia and India. It is noted that the 95 percent
of goods and services are tariff free in between Australia and India. It is
also possible in between India and Australia.

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